Sudden drop in the British pound vs. dollar sends currency markets reeling; Traders mystified

the Market Movers at work here

These alghoritm induced flash crashes are occuring more and more often - a very ugly development.

Guys, there has been nothing on on the GbpUsd for weeks!! Thank god we have some volatility

This is nothing compared to the move form October 2016. That was the best move I have seen on forex so far.

JEEZ! How lazy can the get? Read a news feed! Why the USD Strengthened (chronological order):

1.)
Causing USD to tighten:
"The inflation trade has been retreating this year but this afternoon's strong demand on TIPS suggests that some investors are not calling it quits."
*there was also a REALLY high print for US data this morning. People were waiting from Draghi to be done to do anything I personally think...

this is causing EUR to loosen:
DJ Choppy Markets Underscore Why ECB Will Take It Slow -- Heard on the Street 2017.05.18 20:20:081


2.) 1:01PM CST

Cleveland Federal Reserve Bank President Loretta Mester on Thursday repeated her call for further U.S.-interest rate hikes now that the economy has reached full employment and inflation is nearing the Fed’s 2-percent goal.


3.) Strong TIPS Auction -- MarketTalk at 1:34PM CST


4.)
Im pretty sure the decline in federal-funds futures is in response to things the Fed doesnt care about, said Thomas Simons, an economist at Jefferies.
I dont think they are concerned with a general dysfunction in Washington, he said.


LAZY! Haha...

dont you mean june?

NONE of that explains a 100 pip move in a min or two. Also, if this were true, the USD would have done the same against other currencies.

Lazy

who cares, I took advantage of that drop when I saw the flag form and a bearish engulfing pattern. There's been movement on the gbp (a little finicky, but it was there), that's why it's important to truly understand technical analysis.

See what you are saying. EURUSD went down also but was not a "flash crash." That news all came out though and the MM's probably just cleared out their standing orders and it fell. Simple right?

No I do not mean brexit vote. October flash crash that happened in 1min. Check it on the charts.

It's ok gentlemen, carry on

lol...

My $99 Expert Advisor started trading 10,000 lots.

Chart manipulation. Most likely Central bank didn't want it going above 1.3 so put in a big bearish candle in 4hr chart.

Traders mystified
Translation
Traders lost money

.. after all, trend seems to have turned up, therefore buy buy buy
but the herd lose, lose, lose
The market will always move in the direction that causes the greatest financial damage to the largest number of accounts.